Large population of poor people in India, find it difficult to afford the more expensive branded category of medicines. They were fired up by our PM's “Jan Aushadhi” scheme which ensures availability of quality medicines at affordable prices to all. My students are doing their bit for the country . Appreciate if you could look through their work and encourage them for their future. In case you need to contact them, we have provided the contacts on their project material.

1. Generic Medicines in India: Promulgating
Growth and Access
Under the guidance of:
Prof. Balaji Ramadurai
VJTI Project Management, Mumbai
Aditi Bandewar(162201014)
aditi.bandewarvjti18@gmail.com
8007709587
Ayesha Qureshi(162201010)
Ayesha.qureshivjti18@gmail.com
9049664313
Suhas karajgar(162200016)
suhas.karajgarvjti18@gmail.com
9021184371
Mayur Borse(162200013)
mayur.borsevjti18@gmail.com
9029525504
Tanmayi Naik(162201025)
tanmayi.naikvjti18@gmail.com
8169189832
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2. Generic Drugs: a boon in disguise
Generic Drugs
• Drugs are produced and distributed without patent
protection
• Contains the same active ingredients as the original
formulation
Less Cost & Higher Margins
• Switching the prescriptions from branded drugs to
generic drugs will lead to the annual reduction of
overall 11% in drug costs
• Sale of generic drugs provides higher profit margins
than the sale of branded drugs
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3. Sales Growth
0
10
20
30
40
50
60
70
80
0
2
4
6
8
10
12
14
16
18
20
2004 2006 2008 2010 2012 2014
Sales Growth Indian generic Drug Companies
Total Sales(US$Bn) Foreign Sales(US$Bn)
Inbillions
Inpercentage
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4. Drug Patent Expirations
• A generic drug can only be introduced once patent protection on the associated
brand-name drug has expired
• Patent expirations are a massive growth driver for generic drugs. Once drugs go
off-patent, generics swoop in and tend to acquire 80%–90% of total drug sales.
Sr. No Brand Expiration Year
1 MACUGEN 2017
2 BYETTA 2017
3 BYDUREON 2017
4 EMTRIVA 2018
5 GENVOYA 2018
6 LATUDA 2019
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5. Cost Comparison
Sr.No. MEDICINE GENERIC PRICE Rs.
(10 Tablet)
BRANDED PRICE Rs.
(10 Tablet)
1 Aminophylline:225mg 5.09 44.80
2 Vit E:100mg 5.34 16.62
3 Analgin:500mg 8.27 25
4 Tetracycline:500mg 14 23
5 Bacampicillin:400mg 53 137.65
6 Theophylline:200mg 2.8 10.40
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6. Cost effective & price are less.
Governing framework is same.
Provides higher profit margins.
Exempted from the patenting as they have
same active molecules as that of the
branded patented drugs.
No sales promotion as done for the
branded medicine.
Less Awareness
A much neglected field.
Strict and stringent rules and regulations
and price control means like licensing.
Many branded drugs will be losing their
patents in the time span of 2015-2019
Potential Growth opportunity in the
developing nations is about 15%-20%
Countries like India and china can serve huge
markets as the mass population faces
difficulty expensive and branded medicines.
Patent expirations may lead to an entry of
new competitors (generic competitions).
Weak, small companies usually go out of
business.
SWOT
ThreatsOpportunities
Strengths Weakness
SWOT Analysis
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7. Problem Statement
• India being one of the leading
countries contributing in
production of generic
medicines still with lowest
consumption of
generic medicines.
• In rural areas, with no
substantial per capita income
to afford medicines, generic
medicines comes as boon.
• So, there is lot of scope to
increase the usage of generic
medicines as they are way
cheaper than branded
medicines.
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8. Reasons for incomplete purchase of
prescribe drugs in rural area
3.4 5.3 4.6 3.3
83.4
86.8
92.1 96.7 100
0
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
80
90
100
Financial
constraints
Drugs
unnecessary
Drugs not
available
Prilemenary
therapeutic
testing
Drug available
at home
Rural
Cummulative percentage
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9. Jan Aushadhi: The Idea
Large population of poor people in India, find it difficult
to afford the more expensive branded category of
medicines
National Pharmaceutical pricing authority (NPPA) mandate to
control and fix the maximum retail prices of a number of
scheduled/listed bulk drugs and their formulations
Hence prices of these medicines have remained quite
stable and affordable.
“Jan Aushadhi” scheme of the Government is to `ensure
availability of quality medicines at affordable prices to all
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10. What is Jan AushadhiDoNotCop

11. Jan Aushadhi Pariyojna
Jan aushadhi campaign implemented for
five year plan starting from 2008-09.
PMBJK is set up to provide generic
drugs.
More than 850 PMBJK are presently
functional spread over 28 states.
Marketing of generic drugs through Jan
aushadhi stores.
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12. Challenges for Generic drug consumption
Percentage description of drug use in India
Continued..
When it comes to consumption or fame of generic drugs in India we recollect
that only 23% generic drugs are consumed throughout the country even if it
is one of the leading countries to produce Generic Drugs. This may be due to
numerous reasons depending on diverse conditions.
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13. Reasons for
less
consumption
of GD
Weak supply
chain
management
Lack of
Awareness
Monopoly of
doctors in
prescribing
branded
drugs
Lack of
promotion
Lack of trust
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14. Shortcomings in Jan Aushadhi YojnaDoNotCop

15. Awareness Program
Objectives
To know the
awareness about
Generic Medicines &
Jan Aushadhi Stores
among the people.
Results
Q.1:- What do you prefer
going to
government hospital or
private hospital?
Q.2:- Do you know about
Generic Medicines?
Q.3:- Do you know about
Jan Aushadhi Stores?
Questions Asked
preferg
preferp
83%
17
%
knowjas
dknowjas
81 %
19 %
67%
33% Knowgm
dknowgm
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16. • Infrastructure and procurement facilities were not in
place as per requirements.
Infrastructure
• Jan Aushadhi retail chains have been opened but no
stores in Telangana
• 319 generic drugs were identified to be supplied through
these stores, but only 85 drugs belonging to 11 therapeutic
groups are sold.
Unequal distribution
of stores and
medicines
• Some medicines have gone out of stock due to poor supply
chain and distribution networks.Supply issues
Information
infrastructure
Jan Aushadhi Pariyojna - supply Chain Issues
• Improper IT system, inventory management and
Connectivity
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17. Demand Forecasting
0
2
4
6
8
10
12
14
16
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Year 2013 year 2014 year2015 year 2016 year 2017
Yt/Sales(in millions)
Forecast
For Diabetes patients
0
5
10
15
20
25
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Year 2013 year 2014 year2015 year 2016 year 2017
Yt/Sales(in millions)
Forecast
For Heart patients
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18. Existing Supply Chain of Jan Aushadhi
CPSUs
Private sector
manufacturers
Central
Warehouse
Distributor
Jan Aushadhi
stores
BPPI
Company Factory
locations
Sun Pharma-Ranbaxy
labs
Punjab
Maharashtra
Himachal Pradesh,
Goa, New Delhi,
Haryana
Dr.Reddy’s Telangana, Andhra
Pradesh ,
Pondicherry,
Karnataka , Himachal
Pradesh
Cipla Maharashtra,
Karnataka,
Madhya Pradesh,
Sikkim, Himachal
Pradesh
Novartis Maharashtra ,
Karnataka , Andhra
Pradesh
Companies in which
the direct holding of
the Central
Government or other
CPSUS is 51% or more.
e.g. INDIAN DRUGS
AND
PHARMACEUTICALS,
HINDUSTAN
ANTIBIOTICS ,
INDIAN MEDICINES
AND PHARMA
CORPORATION .
Customers
Carrying & Forwarding
Agent(C & F)
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19. Bureau of Pharmaceutical PSUs of India (BPPI) 2008 comprises all the Pharma
CPSUs under the Department of Pharmaceuticals as a separate and independent
unincorporated entity .
Co-ordinates
marketing of the
generic drugs
through the Jan
Aushadhi stores.
Coordinates with
Hospitals in
preparation of
formulary.
Co-ordinates supply of
medicines in the State from
their own plants, other
Pharma PSUs of Central &
State Governments and
Private Sector.
Co-ordinates with
States to open stores,
monitor functioning of
the stores .
Monitors proper
running of Jan
Aushadhi stores with
the help of other
CPSUs.
Provides medicines
as per rates decided
in the joint
Forum/Core
Committee
Monitors activities of
the Jan Aushadhi
stores in the areas
allocated to them.
Fixes MRPs(including
fixing common prices
for the medicines)
Suggests/approves
common super
stockiest to ensure a
proper supply chain
mechanism
Requirements:
•Drug demand
forecasting
•Sales and
Order Mgt.
•Financial
Accounting
Mgt
•Procurement
Mgt.
Inventory Mgt.
BPPI as Central Warehouse
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20. Supply Chain structure of Generic Drugs
CPSUs Private sector
manufacturer
Central
Warehouse
Carrying & Forwarding
Agent (CFA)
Jan Aushadhi
stores
BPPI
Existing Supply Chain Proposed Supply Chain
Product flow
Information flow
Distributor
Distributor Partner
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21. The distribution partner will implement a distribution
system initially in the state of Maharashtra. BPPI open will
100 stores initially in the state of Maharashtra.
Delhi
Central warehouse
Intermediate
warehouse
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22. Receive Jan Aushadhi drugs at its
warehouse and deliver to stores
Responsibilities of Distribution System
▪ Receive the Jan Aushadhi
drugs at its warehouse and
supply to the Jan Aushadhi
stores as and when ordered.
▪ The bidder shall provide a
system to track the status of
the consignment
▪ Provide minimum 60 days’
credit period to Jan Aushadhi
stores against the medicines
supplied.
Manage reverse supply chain
Creating adequate infrastructure for
intermediate warehousing and
transport
Meeting the defined SLAs
Demand management and providing
MIS to BPPI for initiation of
procurement
Inventory Management
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23. Receive Jan Aushadhi drugs at its
warehouse and deliver to stores
Responsibilities of Distribution System
▪ Collect expired, returned or
unsold products from the Jan
Aushadhi stores and return
them to BPPI or dispose
them, as decided by BPPI.
Manage reverse supply chain
Creating adequate infrastructure for
intermediate warehousing and
transport
Meeting the defined SLAs
Demand management and providing
MIS to BPPI for initiation of
procurement
Inventory Management
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24. Receive Jan Aushadhi drugs at its
warehouse and deliver to stores
Responsibilities of Distribution System
Manage reverse supply chain
Creating adequate infrastructure for
intermediate warehousing and
transport
Meeting the defined SLAs
Demand management and providing
MIS to BPPI for initiation of
procurement
▪ Create the required
infrastructure for intermediate
warehousing for Jan Aushadhi
products in the states it will
supply Jan Aushadhi products
to meet SLAs.
▪ Set aside defined area for
storage of Jan Aushadhi
products in the warehouses if
the area is also being used for
storage of other company’s
products.
▪ Make provision for climate
controlled/cold chain for
medicines that require the
same, within the warehouse as
well as its modes of transport,
so as to avoid spoilage of the
products.
Inventory Management
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25. Receive Jan Aushadhi drugs at its
warehouse and deliver to stores
Responsibilities of Distribution System
Manage reverse supply chain
Creating adequate infrastructure for
intermediate warehousing and
transport
Meeting the defined SLAs
Demand management and providing
MIS to BPPI for initiation of
procurement
▪ The partner will meet the
SLAs as defined and
communicated by BPPI for
each distinct activity and level
of responsibility handled by
the partner.
▪ Ensure time-bound delivery
of products to stores.
▪ Pay the defined penalty in
case of non-fulfillment of
SLAs.
Inventory Management
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26. Receive Jan Aushadhi drugs at its
warehouse and deliver to stores
Responsibilities of Distribution System
Manage reverse supply chain
Creating adequate infrastructure for
intermediate warehousing and
transport
Meeting the defined SLAs
Demand management and providing
MIS to BPPI for initiation of
procurement
▪ Assist BPPI in forecasting the
drug demand at the JAS stores as
well as for other Jan Aushadhi
products.
▪ Avoid any mismatch between
demand and supply and ensure
availability at all levels.
Inventory Management
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27. Receive Jan Aushadhi drugs at its
warehouse and deliver to stores
Responsibilities of Distribution System
Manage reverse supply chain
Creating adequate infrastructure for
intermediate warehousing and
transport
Meeting the defined SLAs
Demand management and providing
MIS to BPPI for initiation of
procurement
Inventory Management
▪The agency has to monitor stock levels at
its warehouses and at the Jan Aushadhi
stores, with an eye on the reorder point
and safety stock at each location.
▪Manage distribution, recording,
reporting and inventory management of
drugs and other supplies at the State/
District/ sub-district levels.
▪ Interaction to obtain their information
and monitoring the stock of Drugs and
Supplies at the State/District/sub-district
levels.
▪ Monitoring the stock of Drugs and
Supplies at the designated ware houses
meant for storing the Jan Aushadhi
products and ensure supply of Drugs and
supplies should be in First Expiry First Out
(FEFO) method.
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28. IT Proposal
The IT Service Provider will be responsible for developing a web-based application for
drug distribution, ordering, and inventory management, providing training to
application users and maintaining and operating the software and hardware for the
application
• App development,
Customization and
Implementation
• Hardware,
Networking, Data
centre hosting
• Training
Phase 1
• Support and Maintenance
• Help desk ,inventory
database mgt , User
Management , Warranty
etc.
Phase
2
Requirements of IT
Infrastructure :
✓Sales and Order
Mgt.
✓Demand
Forecasting Mgt.
✓Inventory Mgt.
✓Financial
Accounting Mgt.
✓Procurement
Mgt.
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29. Government InitiativesDoNotCop

30. Recommendations to increase the
Consumption of Generic Drugs
Packaging of generic medicines
should be worked upon so as to
make drugs attractive following
the mentality of Indian
consumer.
Government should supply
generic medicines not only
through stores and hospitals but
also through health campaigns
and drives along with the
Awareness Programmes.
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